[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1694 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1694

 To limit the use of cost-type contracts by the Department of Defense 
                for major defense acquisition programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 12, 2011

Mr. McCain (for himself and Ms. Ayotte) introduced the following bill; 
  which was read twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To limit the use of cost-type contracts by the Department of Defense 
                for major defense acquisition programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Cost-Type Contracting Reform 
Act of 2011''.

SEC. 2. LIMITATION ON USE OF COST-TYPE CONTRACTS.

    (a) Prohibition With Respect to Production of Major Defense 
Acquisition Programs.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall modify the 
acquisition regulations of the Department of Defense to prohibit the 
Department from entering into cost-type contracts for the production of 
major defense acquisition programs (MDAPs).
    (b) Conditions With Respect to Development of Major Defense 
Acquisition Programs.--Section 818(d) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2329; 10 U.S.C. 2306 note) is amended--
            (1) in paragraph (1), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraphs:
            ``(3) all reasonable efforts have been made to define the 
        requirements sufficiently to allow for the use of a fixed-price 
        contract for the development of the major defense acquisition 
        program; and
            ``(4) despite these efforts, the Department of Defense 
        cannot define requirements sufficiently to allow for the use of 
        a fixed-price contract for the development of the major defense 
        acquisition program.''.
    (c) Reporting of Cost-Type Development Contracts.--Not later than 
30 business days before issuing a solicitation for the development of a 
major defense acquisition program, the Secretary of Defense shall 
submit to the Committee on Armed Services and the Committee on 
Appropriations of the Senate and the Committee on Armed Services and 
the Committee on Appropriations of the House of Representatives notice 
of the proposed award and the written determinations required under 
paragraphs (1) and (4) of section 818(d) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007, as amended by 
subsection (b), and the reasons supporting the determinations.
    (d) Definitions.--In this section:
            (1) Major defense acquisition program.--The term ``major 
        defense acquisition program'' has the meaning given the term in 
        section 2430(a) of title 10, United States Code.
            (2) Production of a major defense acquisition program.--The 
        term ``production of a major defense acquisition program'' 
        means the production, either on a low-rate initial production 
        or full-rate production basis, and deployment of a major system 
        that is intended to achieve operational capability that 
        satisfies mission needs, or any activity otherwise defined as 
        Milestone C, or Key Decision Point C in the case of a space 
        program, under Department of Defense Instruction 5000.02 or 
        related authorities.
            (3) Development of a major defense acquisition program.--
        The term ``development of a major defense acquisition program'' 
        means the development of a major defense acquisition program or 
        related increment of capability, the completion of full system 
        integration, the development of an affordable and executable 
        manufacturing process, the demonstration of system integration, 
        interoperability, safety, and utility, or any activity 
        otherwise defined as Milestone B, or Key Decision Point B in 
        the case of a space program, under Department of Defense 
        Instruction 5000.02 or related authorities.
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